More good news for the new year.
The mortgage delinquency rate (the ratio of borrowers 60 or more days behind on mortgage payments) is expected to fall nearly 20 percent by the end of 2011 to 4.98 percent, according to TransUnion.
At the end of 2010, the mortgage delinquency rate is expected to be 6.21 percent.
The credit reporting bureau said the anticipated drop is more than double the 9.87 percent annual decline expected between the end of 2009 and 2010.
Between 2006 and 2009, there were three consecutive year-over-year increases of 54 percent, 53 percent, 50 percent, respectively.
“We believe the nation will experience an improvement in mortgage delinquencies during 2011,” said Steve Chaouki, group vice president in TransUnion’s financial services business unit, in a press release.
“This will be driven by a slowly improving unemployment picture and continued stabilization in housing prices. While there is continued price pressure in many markets, we expect a growing number of areas of the country to experience a rise in property values along with some stabilization of values in those states and markets hardest hit by the recession.”
Interestingly, the hardest hit states will experience the greatest turnaround, perhaps because things are so bad there currently and can’t get any worse.
Mortgage delinquencies are slated to fall 24.77 percent in Nevada, 24.27 percent in Arizona and 23.90 percent in Florida next year.